Auto insurers are hitting high customer-satisfaction levels when handling claims, but they’re still struggling to transition claimants to digital claims reporting products, according to a new study by J.D. Power.
“These findings are noteworthy in light of claim severity outpacing the decline in claim frequency, which is putting enormous pressure on traditional customer service and claims processing operations to create a more effective way to handle auto claims,” J.D. Power said in a news release.
“Insurers are doing a great job at the critical customer touch point of claims reporting, but the end-to-end claim process is still costly and not as fully integrated as it needs to be,” said David Pieffer, J.D. Power’s property and casualty insurance practice lead. “The challenge for insurers is to seamlessly transition the claims reporting function to more cost-effective digital customer-care solutions. For many insurance customers, reporting a claim is one of the few direct interactions they have with their insurer, and it comes at a time when they are looking for a reassuring voice. That’s not the ideal time to introduce a new digital touch point.”
Among the study’s key findings:
- Customer satisfaction with auto claims is at a record high. Overall satisfaction with the auto insurance claims process jumped to 861 (on a 1,000-point scale), a three-point jump from last year’s survey and an all-time high.
- Satisfaction is up industry-wide. Customer satisfaction improvements were found across the board, with the gap between the highest- and lowest-ranked insurers shrinking to only 70 points – the smallest gap since the study began.
- Few customers are adopting digital “first notice of loss” (FNOL) offerings. Customers have increased their use of insurance technology over the last five years, but FNOL currently has the lowest utilization, with only 11% of claimants filing an FNOL digitally. Customers who do use digital FNOL channels report lower satisfaction.
Erie Insurance topped the list for customer satisfaction, with an overall score of 891. It was followed by Amica Mutual (887) and Auto-Owners Insurance (882).